Charter 2005 Annual Report Download - page 16

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CHARTER COMMUNICATIONS, INC. 2005 FORM 10-K
(c) Represents ‘‘fully diluted’’ common shares outstanding, assuming exercise, exchange or conversion of all outstanding options and exchangeable or convertible securities,
including the exchangeable membership units described in note (b) above, all shares of Charter Series A convertible redeemable preferred stock, the 14% CCHC
exchangeable accreting note, all outstanding 4.75% convertible senior notes and 5.875% convertible senior notes of Charter, and all employee, director and consultant
stock options.
(d) Reflects common shares issuable upon conversion of the 36,713 shares of Series A convertible redeemable preferred stock. Such shares have a current liquidation
preference of approximately $4 million and are convertible at any time into shares of Class A common stock at an initial conversion price of $24.71 per share (or
4.0469446 shares of Class A common stock for each share of convertible redeemable preferred stock), subject to certain adjustments.
(e) Reflects shares issuable upon conversion of all outstanding 4.75% convertible senior notes ($20 million total principal amount), which are convertible into shares of
Class A common stock at an initial conversion rate of 38.0952 shares of Class A common stock per $1,000 principal amount of notes (or approximately $26.25 per share),
subject to certain adjustments.
(f) Reflects shares issuable upon conversion of all outstanding 5.875% convertible senior notes ($863 million total principal amount), which are convertible into shares of
Class A common stock at an initial conversion rate of 413.2231 shares of Class A common stock per $1,000 principal amount of notes (or approximately $2.42 per share),
subject to certain adjustments.
(g) The weighted average exercise of outstanding stock options is $4.46.
(h) As a result of the settlement of the CC VIII dispute, Mr. Allen, through his wholly owned subsidiary CII, received an accreting note (the ‘‘CCHC note’’) that as of
December 31, 2005 is exchangeable for 24,662,333 Charter Holdco units. The CCHC note has a 15-year maturity. The CCHC note has an initial accreted value of
$48 million accreting at 14% compounded quarterly, except that from and after February 28, 2009, CCHC may pay any increase in the accreted value of the CCHC note
in cash and the accreted value of the CCHC note will not increase to the extent such amount is paid in cash. The CCHC note is exchangeable at CII’s option, at any
time, for Charter Holdco Class A Common units at a rate equal to the then accreted value, divided by $2.00. See ‘‘Item 13. Certain Relationships and Related
Transactions — Transactions Arising Out of Our Organizational Structure and Mr. Allen’s Investment in Charter Communications, Inc. and Its Subsidiaries — Equity Put
Rights — CC VIII.’’
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